Tumwater reports shrinking sales tax

Tumwater's sales tax revenues fell by 4. 9% from January to May 2025, driven by changes in consumer spending habits. Finance Director Troy Niemeyer reported that the city experienced its lowest single-month sales tax collection in three years in April, with revenues dropping to $694,744. However, business and occupation tax revenues saw a year-over-year increase of 7. 6%, indicating a healthier revenue stream from local businesses.

Niemeyer highlighted that Tumwater relies less on sales tax compared to other cities, where it constitutes 30% to 50% of revenues. He also noted the stable employment landscape in the city, largely due to the presence of state agencies, despite potential workforce reductions. The city anticipates continued growth over the next two decades, as indicated in its comprehensive plan. Furthermore, the total expenditure for the year is running 5% below budget, providing a buffer against revenue declines. Niemeyer’s report reflects a balanced view of challenges and strengths in Tumwater's fiscal landscape.